The County Historical Society: Financial and Reporting Issues

Abstract

Jessie Star, a recent accounting graduate from State University, has just volunteered (at the urging of her boss) to be the treasurer for the local Historical Society. The County Historical Society is a not-for-profit organization that operates a museum displaying historical artifacts and an archive library housing historical documents and photographs. The Society also operates a gift shop in its museum and manages a historical home owned by the county government. The museum, library, storage areas, and offices are located in a building rented from a local corporation. The historical home is located just a few blocks away. The Society has three employees on its payroll: Robert James, the full-time Executive Director, Erika Lawson, the part-time Museum Assistant, and an Archive Librarian, John Nelson. A volunteer Board of Trustees, consisting of twelve members from the community, directs the Society. As Treasurer, Jessie is an officer and member of the Board of Trustees. She has the primary responsibility for maintaining the Society’s books, making investment/financing recommendations to the Board, and assisting with the annual external audit of the financial statements.

Jesse has been struggling to get up to speed with the Society’s accounting so that she’ll be ready for her first Board meeting. She is not very familiar with Fund Accounting and has never been involved with this type of not-for-profit organization. Jessie set up a meeting with the former treasurer, Al Gone, to help her get up to speed with the issues.